The bill amends Section 1 of P.L.2024, c.41, authorizing the New Jersey Infrastructure Bank to allocate up to $2.47 billion for loans to local government units or public water utilities for environmental infrastructure projects. It expands the scope of eligible expenses to include capitalized interest, administrative costs, and reserve capacity expenses. The bill also allows the trust to transfer funds from established trust funds to support drinking water and clean water projects, ensuring these initiatives receive adequate financial support. Additionally, it outlines specific projects eligible for funding, including supplemental loans for clean water and drinking water infrastructure, and establishes priorities for loan distribution based on estimated amounts for various project sponsors.

Moreover, the bill modifies existing legislation regarding the financing of drinking water projects through the Pinelands Infrastructure Trust Fund, aligning them with the regulations governing wastewater projects until new regulations for drinking water are developed. It introduces the "Storm Sandy and State Fiscal Year 2025 Clean Water Project Eligibility List," detailing eligible projects and their estimated loan amounts. The bill also sets requirements for loans, including compliance certifications and repayment terms, and allows for adjustments to loan amounts based on final costs and other factors. A deadline of July 1, 2025, is established for project sponsors to execute loan agreements, after which they will forfeit their entitlement to the loans. The act is set to take effect immediately upon approval.